Illinois LLC vs Wyoming LLC (2026)
Compare Illinois LLC vs Wyoming LLC — filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
| Factor | Illinois | Wyoming |
|---|---|---|
| Filing Fee | $150 | $100 |
| Processing Time | 10 day(s) | 1 day(s) |
| Annual Report Fee | $75 | $62 |
| Annual Report Due | Anniversary month | Anniversary month |
| State Income Tax | Yes | No |
| Anonymous LLC | No | Yes |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A — you're in your home state | ~$150 + registered agent ~$150/yr |
Verdict: Illinois wins for most businesses
For most Illinois-based small businesses, forming locally in Illinois is more cost-effective and simpler than Wyoming. Wyoming only makes sense if you need anonymous ownership, have significant privacy concerns, or your investors specifically require it.
Filing Fees & Formation Costs
While Wyoming's initial filing fee is $50 lower at $100 versus Illinois' $150, this savings quickly disappears when you factor in the hidden costs. If you operate in Illinois but form in Wyoming, you must register as a foreign LLC in Illinois, which costs approximately $150 plus annual fees. You'll also need a registered agent in Wyoming at around $150 per year, making Wyoming formation significantly more expensive upfront.
Taxes: Illinois vs Wyoming
Wyoming has no state income tax, while Illinois imposes both corporate income tax and personal income tax on LLC profits passed through to members. However, if your LLC operates in Illinois, you'll still owe Illinois taxes regardless of where you formed, eliminating Wyoming's tax advantage. Wyoming also has no franchise tax or minimum annual tax, while Illinois has minimal ongoing tax requirements for small LLCs.
Privacy & Asset Protection
Wyoming allows anonymous LLC formation where member names don't appear in public records, while Illinois requires disclosure of at least one member or manager. Both states offer strong charging order protection for LLC members' personal assets. Wyoming's privacy laws are among the strongest in the nation, making it attractive for business owners who prioritize anonymity or have concerns about public disclosure of their business interests.
Annual Maintenance Costs
Illinois charges $75 annually for its report due during the anniversary month, while Wyoming charges $62 for its annual report. However, Wyoming-formed LLCs operating in Illinois pay both states' annual fees plus ongoing registered agent costs of around $150 per year. The total annual cost for a Wyoming LLC operating in Illinois typically runs $350-400 versus just $75 for an Illinois LLC.
When Wyoming Actually Makes Sense
Wyoming formation is genuinely beneficial for Illinois business owners in specific situations: when you need anonymous ownership for privacy or security reasons, when you have sophisticated investors who prefer Wyoming's business-friendly laws, or when you're planning multi-state operations from the start. For online businesses with no physical presence requirements, Wyoming can also provide legitimate tax and regulatory advantages worth the extra complexity and costs.